Momentum Mines · LESSON 13 · 2 MIN
Moving averages lag
The idea
A moving average smooths past prices. It can help organise trend context but reacts after prices move.
Try the scenario
Price jumps sharply while a 50-period average moves gradually.
Check your understanding
Why does the average respond slowly?
- It contains many earlier observations
- It predicts tomorrow
- It measures only the last trade
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